Lesson 1 of 24

Understanding Fine-tuning

Why Fine-tune LLMs?

3 min read

Pre-trained models like Llama, Mistral, and Qwen are incredibly capable out of the box. So why would you spend time and compute to fine-tune them?

The Limitations of Pre-trained Models

Pre-trained LLMs are generalists. They know a lot about everything, but they may not know enough about your specific domain:

Challenge Example
Domain vocabulary Medical, legal, or industry-specific terminology
Company knowledge Internal processes, product names, policies
Task specialization Specific output formats, coding styles
Tone and style Brand voice, formal vs casual communication

When Fine-tuning Makes Sense

Fine-tuning is the right choice when you need:

1. Domain Expertise

Train a model on your proprietary documentation, research papers, or specialized knowledge base.

Pre-trained: "A synapse is a junction between neurons."
Fine-tuned (Medical): "A synapse is the specialized junction where
neurotransmitter release occurs via calcium-dependent exocytosis,
with typical synaptic delay of 0.5-1ms..."

2. Consistent Output Format

Ensure the model always responds in a specific structure—JSON, XML, or your custom format.

3. Task Specialization

Create models optimized for specific tasks like:

  • Code generation in your stack
  • Customer support for your product
  • Legal document analysis
  • Scientific paper summarization

4. Cost Reduction

A smaller, fine-tuned 7B model can outperform a general-purpose 70B model on your specific task—at 1/10th the inference cost.

The ROI of Fine-tuning

Metric Before Fine-tuning After Fine-tuning
Task accuracy 65-75% 90-95%
Inference cost $10/1M tokens $1/1M tokens (smaller model)
Response consistency Variable Highly consistent
Domain knowledge Generic Specialized

What You'll Learn in This Course

  1. Choose the right fine-tuning method for your use case
  2. Prepare high-quality training datasets
  3. Fine-tune models using LoRA and QLoRA with minimal hardware
  4. Use Unsloth for 2x faster training with 70% less VRAM
  5. Align models using DPO (Direct Preference Optimization)
  6. Deploy your fine-tuned models to Ollama

Let's start by understanding the different types of fine-tuning available. :::

Quiz

Module 1: Understanding Fine-tuning

Take Quiz